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Banking Industry Solutions


Business Challenges

Longer association of a customer with the bank was considered as one of the important parameters in deciding the value of the connection until last decade. However over the last few years, due to change in the economic environment, competition, globalization and advent of new management techniques etc., such sentimental subjective factor is slowly giving place to a more objective evaluation of the economic value of connection in terms of quantification of risk rather than mere longevity of the connection.

In order to ensure that the asset quality of each borrower account is not slipped from performing to non performing status, there is a need for an automated system which takes care of the following:

  • Symptoms of sickness, weakness and deterioration of asset quality must be recognized well in time and acted upon promptly through effective monitoring/ alertness to capture the early warning signal.
  • There should not be excessive reliance on securities in preference to viability and cash flow.
  • There should not be excessive lending to certain borrowers/ group accounts.
  • At the time of sanction of loans, there should not be over valuation of securities.
  • The charges on securities should be properly created.
  • Obsolete stocks should be monitored.
  • Stock statements should be submitted in time by the borrower.
  • Annual Financial statements should be submitted in time by the borrower.
  • All the covenants stipulated while sanctioning the loan should be adhered to.
  • The interest and instalments are paid as per the agreed schedule.